In today's digital age, it’s easier than ever to turn your dream business into reality. The availability of online tools and resources has fueled the rise of self-employment and with it, the solopreneur lifestyle. If you’re not familiar with this term, you may be wondering: What’s the difference between a solopreneur vs. entrepreneur?
A solopreneur runs their businesses independently and handles most tasks on their own, while an entrepreneur focuses on growing the business, delegating day-to-day tasks to their team. Solopreneurs often prioritize flexibility in their work, whereas entrepreneurs aim for growth and scalability.
Both paths offer good career opportunities, but they cater to different ambitions and work styles. In this article, we explore what sets solopreneurs apart from entrepreneurs and what to consider if you’re considering a transition from one to another.
Table Of Contents
What is a Solopreneur?
A solopreneur is responsible for everything in their business, from service delivery to marketing, customer service, and administrative matters. Although they sometimes work with contractors, they don't have full-time employees or formal business partners.
Solopreneurs often leverage technology and automation to streamline processes and manage their workload effectively. This approach offers a key benefit: flexibility. Choosing to be a solopreneur means you can structure work around your lifestyle and have full control over business decisions.
Is a Freelancer a Solopreneur?
Yes, freelancers can be considered solopreneurs. Even if they work on a per-hour or per-project basis for clients, they also do tasks related to their business like sending invoices and managing finances. The best freelancers treat their work as a one-person business, using digital tools to make their workflow more efficient.
Differences between Solopreneur vs. Entrepreneur
Both entrepreneurs and solopreneurs are at the helm of a business, but their approach to building it differs significantly.
Here are the key differences between the two:
Pros and Cons of Solopreneurship
Before jumping into your solo business journey, it's worth considering the advantages and disadvantages of this path.
Let’s start with the pros:
You have full control over your business. Solopreneurs enjoy autonomy over every decision, so you can choose what to work on without the need to consult or gain approval from management or business partners.
Solopreneurs typically face lower overhead costs than entrepreneurs. Operating a solo business means you don't need to worry about employee salaries, leasing a big office space, and other operational expenses. This can result in higher profit margins.
And the cons:
There’s a higher potential for burnout. You’ll need to wear many hats and take on additional tasks beyond your core services. The thought of doing your own bookkeeping may stress you out, but it still has to be done. In contrast, entrepreneurs can distribute the workload across their teams.
It’s more challenging to scale as a solopreneur. Larger projects may be out of reach if you’re the only employee in your business. With a team of people supporting them, entrepreneurs have a bigger advantage when it comes to growth and expansion.
Which Path Is Right For You?
Luckily, you don’t need to be 100% certain about solopreneur vs. entrepreneur! Many business owners start off as solopreneurs, and shift their approach later on.
However, it is a good idea to give some thought to your goals and the different directions you could go. It’s also common for business owners to hire teams because they think they should–only to realize that they actually prefer the solopreneur path.
It’s important to be thoughtful, and ask yourself a few questions throughout the journey:
Do you value independence and a flexible schedule? If so, solopreneurship might be the perfect fit for you. It gives you complete control over your business and the freedom to make decisions that align with your personal and professional goals.
Or do you dream of forming a team and expanding your business? If your vision involves creating a larger enterprise with a high growth potential, then entrepreneurship could be the right choice. You’ll be able to leverage the skills and expertise of your team to scale faster.
Solopreneur Ideas
Choosing a business that aligns with your skills and personal values will increase your chances of success as a solopreneur. Here are some solopreneur business ideas to kickstart your brainstorm.
Career Coach: Help individuals with career development, resume building, and interview preparation.
Business Consultant: Advise startups and small businesses on strategy, marketing, or operations.
Graphic Designer: Create visual content for clients including logos, brochures, and social media graphics.
Web Developer: Build and maintain websites for small businesses, startups, or individuals.
Freelance Writer: Offer content writing, copywriting, or technical writing for blogs, websites, and publications.
Course Creator: Develop and sell online courses on platforms like Udemy or Teachable.
Yoga Instructor: Conduct yoga classes, workshops, or one-on-one sessions virtually or at local studios.
Crafter: Create and sell handmade products such as jewelry, pottery, or home decor on platforms like Etsy.
Note that your choices extend far beyond digital jobs. Perhaps you want to start a dog walking service, or maybe you have a talent for creating custom-made bicycles? The possibilities are endless! What’s important is to build a business around what excites you the most.
Grow Your Business, Not Your Bookkeeping
Running a one-person business means managing everything on your own, but you don’t have to do it all manually. Streamlining your operations can free up time for what you do best—growing your business and serving your clients.
ReInvestWealth’s AI-powered accounting software supports solopreneurs and entrepreneurs alike by automating routine tasks like tracking business expenses and identifying tax deductions. Just let the software handle the time-consuming tasks you like least, so you can focus on the work that matters most to you.
